How to Buy an HUD Home in Virginia
The U.S. Department of Housing and Urban Development (HUD) connects homebuyers with HUD homes in Virginia state as well as the resources necessary to make a purchase through management of the Federal Housing Administration (FHA). These HUD homes are foreclosures that were previously financed through FHA loans by lower-income, first-time buyers who have defaulted on their payments. As a result, VA HUD homes have been returned to the FHA for resale. These residences are generally single-family, one-to-four-unit properties that are sold through auction. In order to buy a home from HUD, there are five main steps that Virginia residents must take. First, residents must learn where to find an HUD home for purchase, then contact an FHA-approved real estate broker to post bids. With this, the home must also be appraised if necessary, inspected and finally, financed with an FHA-approved lender. Learn how to buy HUD homes in Virginia by reading the following sections.
Where to Find HUD Homes in Virginia
For those wondering how to buy HUD homes in Virginia, the process begins by first selecting a home to purchase. Shoppers can search the official Virginia HUD Homes website to find a suitable HUD home. This is a database that lists all single-family properties available for purchase. Through this HUD homes database, a shopper can browse three major list types that will allow him or her to identify properties most applicable to his or her status: homes listed for the general public, homes listed under the Good Neighbor Next Door Initiative and homes listed under Virginia neighborhood revitalization areas. Those HUD homes in Virginia are listed for the general public to view as a database for shoppers to find and filter homes in their areas. Utilizing this tool, HUD shoppers can find homes for significant discounts.
One of the advantages of buying an HUD home in VA is, for professionals such as law enforcement officers, educators, firefighters and emergency medical responders, there are significant housing discounts through the Good Neighbor Next Door Initiative (GNNDI). In an attempt to elevate the value of certain neighborhoods, some HUD homes in Virginia have been discounted specifically for GNNDI-eligible professionals. Although these HUD homes are listed with the rest of the public offerings, they are denoted as GNNDI homes within filter results. This denotation gives special pricing to eligible professionals based on the area’s average household income, homeownership rates and the home’s history of FHA-insured mortgage activity. Low prices are guaranteed for up to seven days before being released to the general public after first being listed on the HUD Homes website.
For those interested in buying a home from HUD in VA, note that although properties offered by the GNNDI are often also within the zoning of revitalization areas, there are some listings that are available to the public for special prices within these zones. Most Virginia HUD homes in these regions that are not GNNDI homes are instead labeled as Asset Control Area (ACA) properties. ACA properties are foreclosed homes that are offered first to ACA participants. Participants include non-profit organizations as well as any state, county or local institutions. For more help with finding an HUD home in Virginia, you can download our complimentary guide today.
How to Buy HUD Homes in Virginia
After a shopper has selected a Virginia HUD home, he or she can then reach out to an HUD-approved real estate broker to begin placing bids. Purchasers can find a list of these brokers on the official HUD database. Along with this, purchasers should also note that HUD homes in Virginia can only be purchased through the sealed-bid auction. Within this auction, brokers will make offers on the purchaser’s behalf and may also compete against other persons, institutions and investors for the same property. Despite this competition, the Virginia HUD office gives HUD home preference to owner-occupant buyers, which is an advantage for those purchasers who seek to live in the home once it is theirs.
Before they buy a home from HUD in Virginia, purchasers may then want to conduct a reappraisal of the property’s value after reaching out to a real estate broker. Whether or not the purchaser requests a reappraisal of a VA HUD home, he or she is still highly encouraged by the Virginia HUD office to have the home inspected before placing a bid. This is because the HUD office sells all homes as-is and takes no responsibility for their conditions. The price shown on the HUD home database takes into account the cost of repairing defects but ultimately leaves it to the discretion of the new owner.
Finally, in order to buy a HUD home, a purchaser must place a bid once all of the previous steps have been taken. Buyers should note that it is not required to finance a HUD home in Virginia state with an FHA loan, although some purchasers may be eligible to do so. Recipients of FHA loans will also receive housing counselling. Specifically, in the case of a home in need of significant repairs, it may be beneficial for a purchaser to consider a 203k Rehabilitation Loan type which is meant for repairing damaged homes. For more specific information to help you buy a HUD home in Virginia, you can download our complimentary guide today.